102: Today in AI: OpenAI Code Red, DeepSeek 20x Cheaper, Gemini App Downloads Surge

2025-12-03

Join 40,000 readers and get the full notes and summary: https://newsletter.aiwithkyle.com/subscribe Subscribe and turn on notifications to catch the next live stream: https://www.youtube.com/@iamkylebalmer?sub_confirmation=1 Want to know which AI business to start? Check out Freedom OS: https://aiwithkyle.com/join-freedom-os This video is from the ‘AI with Kyle News and Updates Live Stream’ First aired: 2 December 2025 Summary: OpenAI has apparently declared a code red, and honestly, it's not har...

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This video is from the ‘AI with Kyle News and Updates Live Stream’

First aired: 2 December 2025

Summary: OpenAI has apparently declared a code red, and honestly, it's not hard to see why. After years of essentially having the consumer AI space to themselves, they're now getting properly squeezed from both sides. On one flank, you've got Chinese models like DeepSeek V3.2 that are open source, competitive in performance, and 20 times cheaper on the API. On the other, Google's Gemini has suddenly become a legitimate contender. App downloads are surging, people are actually asking "should I use Gemini or ChatGPT?", which is a question nobody was entertaining even a month ago. The panic is real enough that they've apparently pushed back their controversial ads rollout, presumably because they know losing goodwill right now would be catastrophic.

What's fascinating here is watching OpenAI transition from being synonymous with AI itself to just being one player among several. They've had a good run with essentially no serious competition for a couple of years, but that comfortable position is evaporating fast. The hype machine is already spinning up—OpenAI reps are on social media promising "something big"—so presumably we'll see them try to reassert dominance soon. Whether it's enough remains to be seen, but the era of smooth sailing is definitely over. Competition is good for all of us, of course, but it's certainly not pleasant if you're the one scrambling to maintain your lead.

Watch full edited live stream: https://youtu.be/80sytIyY-Y0

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—— Time Stamps ——

00:00 Chinese AI Could Collapse US Tech Investment

00:09 Welcome to AI with Kyle